Airbnb In Austria: Navigating The Legal Landscape

Airbnb is legal in Austria, but there are various laws, regulations and best practices that hosts must comply with. For example, in Vienna, there are restrictions on the number of days a property can be rented out to tourists, and there are also rules regarding guest registration, taxes, and health and cleanliness.

Vienna's new Airbnb laws

As of July 1st, 2024, Vienna will implement new restrictions on short-term rentals, aiming to balance the needs of the tourist market and the long-term housing market. The new laws will remove the distinction between residential zones, which have had similar restrictions since 2018, and other areas of the city.

90-Day Limit

Under the new regulations, Viennese homeowners will only be permitted to rent out their properties to tourists for a maximum of 90 days per year. This limit seeks to preserve the right of owners to rent out their homes while they are away on vacation, for example.

Exemption Permits

While some exceptions will continue to be granted, obtaining these will become more challenging. For example, buildings constructed with housing subsidies, such as cooperative apartments, will not be eligible for exemption permits. Additionally, co-owners of condominiums may face difficulties in obtaining the necessary agreement from all parties.

Extension of Ban

The ban on short-term rentals in residential zones will be extended to all levels of a building, not just the main levels. Furthermore, a new ban on commercial short-term rentals and short-term rentals of residences beyond 90 days a year without an exemption permit will be implemented outside of residential zones.

Data Exchange and Liability

The new laws will also facilitate the exchange of personal user data between building and tax authorities to monitor compliance. Both the owner and users of an apartment or house will face extended liability for any violations.

City Tax

Hosts in Vienna must continue to collect and pay the Vienna City tax ("Ortstaxe") regularly. This tax is based on the amount paid for accommodation and is set at a rate of 3.2%. Hosts are obliged to pay this tax by the 15th day of the month following the paid stays.

Austria's tax requirements for Airbnb hosts

Airbnb is legal in Austria, but there are several tax requirements that hosts must be aware of.

Firstly, hosts must be aware of the taxes that apply to their earnings. In general, money earned through Airbnb is considered taxable income and may be subject to income tax, city tax, tourism tax, or VAT. These taxes vary depending on the specific circumstances of the host and their locale. For example, the city of Vienna levies a 3.2% city tax on accommodations, which hosts must collect and remit by the 15th day of the following month.

Hosts should also be aware of the tax forms and deadlines specific to Austria. Tax forms are typically due by April 30 following each tax year, and hosts must declare their earnings from hosting through their host earnings summary. Additionally, it is important to research eligibility for tax credits, reliefs, and allowances.

From January 2021, Airbnb has been reporting specific data to the Austrian tax authorities, including the host's identity, address, bank account details, and earnings for the previous year. This information is provided to the Austrian Finance Ministry, and hosts should ensure they are compliant with these data-sharing regulations.

Furthermore, hosts in Austria are required to maintain a guest register, regardless of the frequency of hosting, earnings, or whether it is their main source of income. This applies to hosts offering single rooms or entire homes. There are two ways to comply: maintaining an electronic guest register or a guest register signed off by the reporting authority. If maintaining their own register, hosts must comply with data protection laws, including the European General Data Protection Regulation (GDPR).

Overall, it is essential for Airbnb hosts in Austria to understand their tax obligations and stay up to date with the applicable laws and procedures. Consulting a tax professional or conducting thorough research is recommended to ensure compliance with Austrian tax requirements.

The impact of Airbnb on Vienna's housing market

Since 2018, Vienna has imposed restrictions on Airbnb rentals in residential zones, limiting them to 90 days per year. From July 2024, these restrictions will be extended to all homes in the city. The aim is to balance short- and long-term housing markets, ensuring that entire dwellings are not taken off the market for tourist accommodation. This change will remove the distinction between residential zones and other areas of the city when it comes to short-term rentals.

The Sharing Economy

The new amendment will take the sharing economy back to its founding narrative, according to Tourism Vienna spokesperson Walter Strasser. This will help to ensure that entire homes are not taken off the housing market, which has seen around 7.5 million overnight stays in the first half of 2023, almost reaching pre-pandemic levels.

Striking a Balance

The 90-day limit seeks to balance the needs of homeowners, who may want to rent out their property while on vacation, with the need to preserve long-term housing options in the city. This change will make Vienna's regulations on short-term rentals consistent across all areas, no longer distinguishing between residential zones and other neighbourhoods.

Exemptions and Challenges

While some exemptions will continue to be allowed, obtaining them will be challenging. For example, the building must have been constructed without housing subsidies, excluding cooperative apartments. Additionally, co-owners of condominiums will need to agree, which may prove difficult. These stricter regulations reflect Vienna's efforts to manage the impact of Airbnb on the city's housing market and strike a balance between short-term rentals and long-term housing availability.

A Strained Relationship

Vienna and Airbnb have had a strained relationship in the past. In 2022, Wiener Wohnen, Europe's largest public housing management service, banned its tenants from subletting via Airbnb. The year before, the city of Vienna won a lawsuit that prevented city-owned apartments from being sublet on Airbnb. In response, Airbnb agreed to inform its hosts about the ban, remove those who broke the rules, and grant the city access to its city portal.

The relationship between Airbnb and the City of Vienna

In 2023, Vienna tightened the rules on Airbnb rentals, with a particular focus on "residential zones". These zones, which have been in place since 2018, prohibit the commercial rental of accommodation for short-term tourist purposes. The 2023 changes extended these restrictions to all homes in the city, effectively removing the distinction between residential and non-residential zones. From July 1st, 2024, homeowners will only be permitted to rent out their properties for a maximum of 90 days per year. This change aims to balance the needs of the tourist market and the long-term housing market, ensuring that properties are not taken off the housing market for exclusive use as short-term rentals.

Prior to these changes, in 2021, the City of Vienna won a lawsuit that banned the subletting of city-owned apartments and municipal buildings on Airbnb. As a result, Airbnb agreed to implement several measures, including:

• Informing hosts in Vienna that subletting of municipal housing is not allowed and removing those who break the rules from the platform.
• Granting the city of Vienna access to the Airbnb city portal to report suspect listings.
• Implementing a nationwide digital registration process for all Airbnb hosts in Austria, providing regular rental statistics, and sharing tax data with the Ministry of Finance.
• Launching a telephone hotline for reporting suspected illegal rentals or loud parties.

While the relationship between Airbnb and the City of Vienna has been challenging, with the city taking active steps to regulate short-term rentals, Airbnb has cooperated with some of the city's initiatives, such as providing access to data and implementing informative measures for hosts.

Airbnb's responsibilities to hosts and guests

Airbnb has a set of rules and guidelines that hosts and guests are expected to follow to ensure a safe and enjoyable experience for everyone. Here are some of Airbnb's responsibilities to hosts and guests:

Airbnb's Responsibilities to Hosts:

• Airbnb provides hosts with resources and information to help them understand their legal obligations and best practices when hosting in Austria. This includes guidelines on health, cleanliness, regulations, permissions, taxes, and insurance.
• Airbnb offers a platform for hosts to list their properties for free, connect with guests, and manage their short-term rental business.
• Airbnb provides hosts with tools such as automated messaging, a direct booking website, channel management, calendar syncing, and pricing updates to streamline their hosting responsibilities.
• Airbnb offers protection to hosts through its AirCover program, which includes damage protection and liability insurance. However, hosts are encouraged to have additional insurance coverage, such as homeowner's or renter's insurance.
• Airbnb encourages hosts to maintain a high standard of cleanliness and follow COVID-19 hygiene and safety protocols.
• Airbnb assists hosts in understanding their tax obligations and provides resources, such as a free tax guide, to help them navigate their tax responsibilities.
• Airbnb notifies hosts of any changes in regulations and requirements, such as the Vienna Building Code Amendment, which introduced restrictions on short-term rentals.

Airbnb's Responsibilities to Guests:

• Airbnb ensures that guests have a safe and secure experience by requiring hosts to maintain a certain standard of cleanliness and safety.
• Airbnb provides guests with a platform to find and book accommodations that meet their needs and expectations.
• Airbnb encourages hosts to provide timely communication and accurate information to guests before and during their stay.
• Airbnb allows guests to share their experiences through reviews, which helps maintain the quality of listings and holds hosts accountable.
• Airbnb offers guest support and assistance during their stay, including emergency procedures and contact information.
• Airbnb prohibits hosts from installing security cameras or recording devices in private spaces, such as bedrooms or bathrooms, to protect guest privacy.
• Airbnb enforces ground rules for guests, such as treating the host's home with respect, following house rules, and being considerate of neighbours and the surrounding community.
• Airbnb provides a damage policy that holds guests accountable for any damage, missing items, or unexpected cleaning costs during their stay.

Frequently asked questions